1 Answer

ICO stands for “Initial Coin Offering” and has been compared to an IPO which is a stock market term that stands for “Initial Public Offering”. It’s important to understand that these 2 offerings are completely different.

Blockchain startups raise initial funds by selling coins that can be used on whatever software or platform they are building. The coins are almost always being sold for utility not equity. So you don’t own any part of the company when you buy their coins.

A lot of people make money off these coins due to speculation and wild price swings.

A company that does an IPO is selling actual stock / equity in their company.